eBook Show Me How Internal Rate of Return Method The Internal rate of return method is used by King Bros. Construction Co. In analyzing a capital expenditure proposal that involves an investment of $22,190 and annual net cash flows of $7,000 for each of the four years of its useful life. Year Present Value of an Annuity of $1 at Compound Interest 696 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.352 2.991 6 4.917 4.355 4.111 3.784 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 a. Determine a present value factor for an annuity of $1 which can be used in determining the internal rate of return. If required, round your answer to three decimal places b. Using the factor determined in part (a) and the present value of an annuity of $1 table above, determine the internal rate of return for the proposal % Check My Work 2 more Check My Work uses remaining Previous Next SA Al Emilie Gul Banner MacBook Air -Contal Railroad Inc. is considering acquiring comentat a cost $230,000. The coment has an estimated of 10 years and to rest is expected to provide yearly net 44,000. The Company's minimum desired rate of retum format present is 15 Present Value of an Annuity of $1 at Compound Interest Year 104 129 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.736 1.690 1.626 1.528 3 2.400 2283 2.106 4 1.465 3.170 2.855 2.50 5 4,212 3.791 3.505 2353 5 4412 4355 4.111 3.785 3326 7 5.582 4.86 4554 4.160 3.605 6.210 4.968 3.837 9 6.102 5.759 4722 10 73360 5145 5.650 5.019 Compute the #. The wrote of retum, the natings are equal to the net hos is the anual depreciation on the entired, med en The cock pred The nerve the bovenlys. Round to the more store Present value of news Les amount to the Net we 0. taigner Beam 115 MacBook Air